OVO's New Fixed Plan

bristolleedsfan

Dolor said:

Logic. If the supplier thought that it was offering a market-leading fixed tariff then it wouldn’t be asking for £150 in exit fees as nobody would want to leave. The truth is that the supplier has to ensure that its losses are covered if people do leave if cheaper tariffs do appear in the next few months.

Since energy crisis started rarely ( if at all) has a market-leading fixed rate been offered with no exit fees.

SouthDownsGirl21

Hi everyone,

I've also had an offer of a fixed price deal from OVO but only for one year.  We have both gas and electricity from OVO and it says that my estimated bill for both will fall by £33 a month.  The early exit fee is £75 per fuel.  I've had fixed rates in the past when OVO was SSE and have done very well out of them but with prices currently more unstable I feel less certain this time around.  Does anyone know if prices are really likely to fall further over the coming months and if so would it be wise to adopt a wait and see for now? Thanks.

Mstty

SouthDownsGirl21 said:

Hi everyone,

I've also had an offer of a fixed price deal from OVO but only for one year.  We have both gas and electricity from OVO and it says that my estimated bill for both will fall by £33 a month.  The early exit fee is £75 per fuel.  I've had fixed rates in the past when OVO was SSE and have done very well out of them but with prices currently more unstable I feel less certain this time around.  Does anyone know if prices are really likely to fall further over the coming months and if so would it be wise to adopt a wait and see for now? Thanks.

Read up? The predictions are there 

Scot_39

Mstty said:

@Scot_39 So it's wrong for people to say the OP made the wrong choice - it may not prove to be the cheapest choice - but that doesn't make it wrong. Even on a Money Saving Website.

I can't see where anyone in the replies has said it's wrong. They presented data that perhaps a brand new member of the board would not have known such as previous discussions and predictions.

The words used by regulars in response to the OP here were :- 

"May" have jumped too soon

"Suggest you consider" terminating the fixed deal

Arguably if the decision wasn't wrong, why would it need "terminating" ?  Simply taking that advice to it's logical conclusion.

Any international crisis, say Taiwan as recent military exercise or a Sudan style in fighting in a large energy producer.
Or  more  simply failure / fault in  uk or say french power plants.
Could unhinge current predictions for next winter.

Like the fire on hvdc link a couple of years ago that took out 2GW for weeks and 1GW capacity for year plus,  or the 10s GW shortages in EDF France nuclear output due to scheduled and unsheduled mantenance and delays on new plant last summer, which hiked UK and European domestic prices.

The OP had possibly looked to secure pricing certainty by taking Ovo deal.

Others are advising a prediction based gamble c2270 iirc Ovo vs c20xx at CI predicted down pricing loss.

But that needs to be balanced vs  potential crisis upside pricing risk capped from July at epg £3000,not £2500.

And as it stands Q4 CI  is higher than Q3 - and a month before both were c£100 higher.  And as recently as this year, the pricing was increasing by £100 in predictions issued just 1-2 weeks apart - taking them to c2140/2180 etc - far closer to Ovo pricing.

Different people will look at that balance differently.  Especially given last winters soaring wholesale prices.

The cap was saving over £1700pa vs Ofgem - and as winter months - a significant chunk of that for last quarter.  £500 of that EPG protection disappears come July.

And that balancing point and increased upside risk wasn't being mentioned.


You might not think the upside risk is a real threat, but who knows.  And that is a very important point. CI of course puts disclaimers on it's - especially it's longer term predictions - for a reason.